Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 0,76:1 and 0,74:1 for two financial years ended 30 June 2023 and 30 June 2024 respectively.

Current ratio

Municipalities throughout the country recorded the current ratio of 0,80:1 and 0,78:1 in 2023 and 2024 respectively.

Debt-to-income ratio

Municipalities on average, had debt-to-income ratios of 0,69:1 and 0,67:1 for the financial years ended 30 June 2023 and 30 June 2024 respectively.

Debt ratio

For the financial years ended 30 June 2023 and 30 June 2024, the municipal debt ratios were 0,35:1 and 0,36:1 respectively.

Municipal revenue stream

The largest contributor to total municipal revenue of R576 039 million (total revenue less deficit: see tables in Part 3) for the year ended 30 June 2024 was 'government transfers and subsidies' (27,2%), followed by 'sales of electricity' (25,7%), 'property rates received' (16,4%), 'other revenue' (14,1%) (which consists of fines, penalties and forfeits, licences and permits, other transfers and subsidies, etc.) and 'sales of water' (9,8%). 'Refuse removal charges' (2,7%) and 'sewerage and sanitation charges' (4,2%) were the smallest contributors.

 Municipal expenditure patterns

For the financial year ended 30 June 2024, the largest contributor to municipal total operating expenditure of R561 132 million (total expenditure less surplus: see tables in Part 3) was 'employee related costs' (25,5%), followed by 'purchases of electricity' (23,5%), 'debt impairment' (12,2%), 'contracted services' (9,4%), 'operational costs' (7,8%) (which consists of travel and subsistence, external audit fees, bank charges, facility and card fees, communication, wet fuel, hire charges, insurance underwriting, etc.), 'depreciation, amortisation and impairment' (7,3%) and 'purchases of water' (5,9%). The smallest contributors were 'remuneration of councillors' (0,9%), 'transfers and subsidies' (1,0%), 'inventory consumed' (1,8%), 'other expenditure' (1,8%) (which consists of loss on disposal of assets, operating leases, etc.) and 'finance costs' (3,0%).